Maharlika Investment Corporation partners with energy agencies for Mindoro grid

Maharlika Investment Corporation (MIC), the country’s sovereign wealth fund vehicle, has forged a cooperation agreement with key energy agencies to rehabilitate, modernize, and develop Mindoro island’s power transmission infrastructure.

In a statement on Tuesday, MIC said it signed an agreement with National Power Corporation (NPC), the National Transmission Corporation (TransCo), and the National Electrification Administration (NEA) on May 25, 2026, for a “whole-of-government” framework aimed at improving the reliability and resiliency of the Mindoro Small Grid while supporting the island's long-term energy requirements.

The sovereign wealth fund said the cooperation deal formalizes more than a year of interagency coordination and technical collaboration among the participating agencies to address the longstanding structural challenges of the Mindoro Small Grid.

Under the deal, MIC will assume a critical and transitional role as a strategic investor to support the acquisition, financing, and implementation of the grid's modernization.

MIC will consider financing and conducting technical studies to determine the most cost-effective ways to rehabilitate the grid, maintaining sole ownership over the work outputs.

The sovereign wealth fund will likewise explore strategic investments to potentially purchase, rehabilitate, and upgrade the off-grid transmission assets currently owned by NPC.

Based on the study outcomes, MIC said it retains the discretion to lead or participate in infrastructure upgrades, in line with its investment and risk management frameworks.

To ensure a comprehensive approach to the island's power issues, the agreement delineates roles for the participating energy agencies.

NEA will serve as the lead coordinating body for technical requirements and program implementation.

TransCo will provide technical and operational expertise in its capacity as the designated Small Grid System Operator (SGSO).

NPC will extend administrative support, provide access to relevant operational data, and facilitate due diligence activities related to its SPUG assets at no cost to the parties.

Mindoro’s existing off-grid transmission system currently operates through a single-loop 69-kilovolt network.

MIC said the island’s configuration lacks redundancy, leaving it highly vulnerable to frequent service interruptions and island-wide outages that hamper local economic activity.

The state-run firm said planned improvements under the agreement include reconfiguring the transmission system into a more resilient, sectionalized network, deploying modern grid-monitoring technologies, and enhancing line accessibility to enable faster maintenance and restoration.

“These interventions are designed to lay the groundwork for Mindoro's eventual interconnection with the national grid,” MIC said/

In addition to localized grid stabilization, the interagency initiative aims to significantly reduce national power subsidies, according to the sovereign wealth fund.

MIC said Mindoro currently accounts for a substantial share of the Universal Charge for Missionary Electrification (UC-ME), which is subsidized by electricity consumers nationwide.

“By reducing system losses and advancing the Mindoro Small Grid toward commercial viability, the project aims to lower overall government subsidy requirements, ultimately reducing electricity costs for consumers nationwide,” it said. –NB, GMA News